The first level of ethics is:

Which of the following statements is true of entrepreneurial politics?

a) An alternative is to be adopted over the status quo to represent the widely distributed benefits. b) The beneficiaries face little risk of opposition from the other side. c) The outcome is largely determined by the amounts and effectiveness of the nonmarket action generated by the interests on each side of the issue. d) The outcome is determined by the preferences of a majority.

Which of the following statements is correct?

A) Suppose Company A's EPS is expected to experience a larger percentage change in response to a given percentage change in sales than Company B's EPS. Other things held constant, Company A would appear to have more business risk than Company B. B) Statement a would be correct if the term "EBIT" were substituted for "EPS." C) Statement a would be correct if the term "EBIT" were substituted for "sales." D) Statement a would be correct if the words "financial risk" were substituted for "business risk." E) The above statements are all false.